Global Advanced Authentication Market in Financial Services Industry - Segmented by Authentication Type (Smartcards, Biometrics, Mobile Smart Credentials, Tokens), and Region - Growth, Trends and Forecasts (2018 - 2023)
The global advanced authentication market in the financial service industry is expected to register a CAGR of 14.37% over the forecast period of 2018-2023. This study aims at gaining a detailed overview of the dynamics of the contemporary market, for the authentication market in the BFSI industry, over the forecast period. It focuses on the need to develop strategic insights in the global and regional-level markets, taking into consideration the technology cycles. The growth of this market is primarily fueled by increasing internet penetration in emerging markets and the growing focus and investments in cyber security. This report seeks to dissect the broader market dynamics for the advanced authentication market in the financial service industry, using Porter’s five forces model.
Globally, the financial industry accounts for the most significant share in the advanced authentication market. With a significant rise in critical financial operations, security remains the primary focus, thus supporting the adoption of authentication solutions. Changing consumer dynamics and increasing technology penetration are driving the adoption of online services among end users. The trend is driving an increase in the number of online transactions, resulting in a renewed emphasis on security and privacy. Owing to multiple vulnerabilities in the systems, the growing integration of connected solutions within the industry is also creating a need for authentication solutions. With increasing number of data breaches and cyber-attacks, the integration of security solutions into the systems is on the rise.
With the advent of fingerprint sensors on mobile devices, financial institutions are integrating advanced authentication technologies within mobile environments, thus providing additional security.
The growing adoption of multi-factor authentication techniques is expected to aid the growth of this market, during the forecast period. However, government regulations, compliance, and retailer payment policies might hinder the growth of the market.
Rapid Adoption of Advanced Biometrics Driving the Growth of Market
The mobile biometrics market is expected to gain full maturity in 2022, from a consumer adoption phase in 2015. It is expected that by 2022, these authentication systems are expected to be ubiquitous and will be installed in almost every authentication method. At present, the market is moving toward the incorporation of multifactor authentication using biometric systems, such as vein, face, heartbeat, voice recognition, etc. As the demand for mobile application security, particularly for financial services, along with low-cost apps and on-demand provisioning of software is growing, the cost of biometric integration is expected to decline. Moreover, consumers' clamor to eliminate their reliance on passwords and pins is further driving the growth in the market.
The United States to Witness Huge Adoption Owing to Significant Losses Incurred by Companies due to Cyber-attacks
The hacked credit card fraud was recorded at USD 4 billion in 2016, a 25% decrease in comparison with 2015, owing to increasing adoption of chip-based cards over magnetic strip cards. Identity theft is one of the fastest growing threats in the region. According to CNBC, around 40 million Americans had their identities stolen, in 2016.
Based on an extensive study from the Breach Level Index (BLI), there were 974 publicly disclosed data breaches, in the first half of 2016, which led to the successful theft or loss of 554 million data records. Identity theft accounted for 64% of all data breaches. Wells Fargo and JP Morgan have started taking proactive steps, to address their primary concerns on security breaches. Therefore, customers have become enthusiastic about the introduction of biometrics modalities.
In a 2011 Twitter survey by Nuance Communications, around 77% of the participants said that they would be comfortable using voice biometrics, if it meant tighter security. Since then, Citi Bank has invested into advanced authentication and deployed voice biometrics authentication from NICE systems, to recognize and redirect customers from their voice, during the first few seconds of conversation.
Key Developments in the Market
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